The annual Las Vegas gathering, the Mecca of retail networking and dealmaking, proved once again that there are a number of opinions and business models that may all be highly warranted in this market. We can use our analogies, metaphors and cliché remarks through this market period, but one theme remained constant in Vegas: We all have to think differently, we have to act differently and we have to react differently. It's a new day in the investment world and professionals are slowly starting to respond to the reality of the market.

ICSC reported that it had over 43,000 registrants at this year's conference. However, the tone of the exhibit halls was drastically different than in recent years. It was palpably quieter than 2007, and access to the exhibit booths was more readily available. Popping in to say hello to an old friend was a regular occurrence this year, whereas appointments were mandatory the last couple of years. Conversations lasted longer, more substantive information was conveyed and—surprise, surprise—people actually got some work done.

So what does this all do for the net lease market? It says that reality is setting in and forthcoming transactions will change. While some of the net lease transactions that occurred over the last several years are almost unheard of these days, many deals are still being completed, albeit at altered terms. The six-cap Walgreens is almost a distant memory, as is the five-cap ground lease. The 1031 exchange is no longer the driving force of the net lease industry and the all-cash, passive investor is now the most sought-after commodity.